Ukraine Presents Defense Projects for EU SAFE Funding

The Ukrainian government has submitted a series of defense-industrial projects for potential financing under the European Union’s SAFE initiative, aimed at boosting the bloc’s defense capabilities.

The Ministry of Defense of Ukraine said the proposals were presented by First Deputy Defense Minister Serhiy Boyev during a meeting of the EU’s Defense Readiness Task Force, which brings together national defense policy directors.

The initiatives include programs related to drone production, ammunition, and missiles.

According to the ministry, the proposed projects are intended to supply Ukraine with critical battlefield capabilities and contribute to strengthening Europe’s defense sector. The plans also aim to secure long-term contracts for Ukraine’s defense industry through 2030.

EU member states and institutions also presented their own defense programs or areas of interest for joint procurement, with several indicating interest in collaboration with Ukraine on UAV and missile development under the SAFE mechanism (Security Action for Europe).

SAFE

The SAFE initiative, approved by the European Council on May 27, 2025, is a new EU financial tool designed to provide up to €150 billion in long-term loans to support joint procurement of defense equipment.

To qualify, each participating country must submit an application alongside a national plan outlining its funding needs. Decisions on loan amounts and advance payments—up to 15% of the loan value — will be made by the EU Council and directed toward urgent defense requirements. Funds will be disbursed by the end of 2030, with repayment terms extending up to 45 years.

The goal of SAFE is to quickly expand Europe’s defense capabilities, scale industrial output, and address critical military shortfalls among EU members.

To access funding, projects must involve at least two procurement partners, either two EU member states; one member state and Ukraine; or one member state and an EFTA/EEA country such as Norway or Switzerland. Candidate or partner countries, including Albania, Moldova, and Japan, may also be eligible, as is the United Kingdom, which is in talks to participate.

SAFE includes a “European preference” clause requiring contractors and subcontractors to base their operations in EU, EEA/EFTA countries, or Ukraine. If no local alternatives exist, facilities in third countries may be used if they do not conflict with EU security interests.

At least 65% of a final product’s cost must derive from components made in the EU, EFTA/EEA states, or Ukraine. The remaining 35% may be covered through bilateral or multilateral deals with approved partner nations.